Question - Danton Company manufactures two products, Product F and Product G. The company expects to produce and sell 600 units of Product F and 3,000 units of Product G during the current year. The company uses activity-based costing to compute unit product costs for external reports. Data relating to the company's three activity cost pools are given below for the current year:
|
|
|
Expected Activity
|
|
Activity Cost Pool
|
Estimated Overhead Costs
|
Product F
|
Product G
|
Total
|
|
Machine setups......
|
$13,720
|
140
|
140
|
280
|
|
Purchase orders......
|
$74,730
|
630
|
960
|
1,590
|
|
General factory......
|
$15,000
|
600
|
2,400
|
3,000
|
Required: Using the activity-based costing approach, determine the overhead cost per unit for each product.